HomeMy WebLinkAbout7.a. Approve Policy Changes for Utility Billing
EXECUTIVE SUMMARY
Utility Commission Meeting: January 13, 2020
AGENDA ITEM: Update of Utility Billing Procedures AGENDA SECTION:
New Business
PREPARED BY: Jeff May, Finance Director AGENDA NO. 7.a.
ATTACHMENTS: Updated Policy APPROVED BY: BLE
RECOMMENDED ACTION: Approve the Updated Utility Billing Procedures
ISSUE
Receive and approve the updated Utility Billing Procedures.
BACKGROUND
Finance Department staff has reviewed and updated the Utility Billing Procedures. The last time that this
policy was changed was in this time last year, so we felt that it was appropriate to get the policy updated to
reflect our current procedures. Mainly we eliminated the wording regarding the 2nd meters as Council has
directed us to discontinue this practice. We also made some small changes, where appropriate, to
reference the addition of the Street Light Utility which will go into place 1/1/20. Any other changes are
mostly cosmetic in nature to clean up the document to reflect current practices.
One final item is the continued handling of the phase-out of the Water & Sewer “Fixed Charges”. These
charges are being phased out over three years which we started in 2019 and will finish in 2021. Staff will
continue to remove any verbiage in the document that references the “Fixed Charges” when it is
appropriate without bringing the policy back again for those changes.
SUMMARY
The updating of the Utility Billing Procedures allows staff to have an up-to-date written document that we
can use to administer our processes.
CITY OF ROSEMOUNT
POLICY TITLE: UTILITY BILLING PROCEDURES
POLICY NUMBER: F-4
PROPOSED BY: UTILITY COMMISSION
DATE APPROVED BY COMMISSION: JANUARY 13, 1992
DATE LAST AMENDED: JANUARY 14, 2019 January 13, 2020
1) OWNERS RESPONSIBILITY
Utility bills are the responsibility of the property owner. Therefore, all (except as a property manager as noted below)
accounts will be put into the property owner’s name. Utility bills will be sent to the property owner. This shall apply
to all owners regardless of city or state of residence. It shall be the responsibility of the property owner to remit
payment for billings on or before due dates.
In all cases, the property owner is considered the customer. Property owner shall be defined as a person, persons,
agency or company listed at the Dakota County Assessor’s Office as the taxpayer on a lot or parcel of property within
the City of Rosemount. If a property is sold, it is the selling owner’s responsibility to notify the City and set up an
appointment for a final meter reading. In the case of a ‘storm only’ account, the seller must notify the City of the sale
date and the new owner name. See item B, Moving in & Moving out below.
NOTE: All commercial/industrial accounts leased or owned on city water and sewer may choose to receive a utility
bill in the name of the business. The property owner will be listed for tax roll certification.
A property manager may be identified as the responsible party for utility bills by formally submitting a letter of
assignment initiated by the property owner to the Finance Department/Utility Billing. This letter shall be submitted
on the form provided by the City and contain live signatures. It shall designate and identify the responsible party,
that party’s legal mailing address and phone number, and bear the signatures of both the owner and designated party.
This authorization will remain in effect until changed by the property owner.
Please call the Finance Department/Utility Billing at 651-322-2099 when you need the following
information:
A. NEW UTILITY ACCOUNTS – Provide the name, address, and daytime telephone number of the new
property owner to establish the utility account.
B. MOVING IN & MOVING OUT (FINAL BILLS) – If the property is on city water and sewer service the
seller must contact Public Works to schedule a final reading appointment for the day of closing. A minimum
24 hour notice is required for an appointment. Office hours are 8:00 a.m. to 4:30 p.m. Monday – Friday. We
require you to provide the closing date, the buyer’s name and a forwarding address for the seller for the final
billing statement. The City will not schedule a final reading without this information. If the property is ‘storm
only’, we require the same information but scheduling an appointment is not necessary as there is no city
water/sewer service. The City recognizes the current owner (seller) as the party responsible for notifying the
City of a transfer of ownership on any property.
C. Any questions or concerns regarding utility bills or meter readings/usages.
D. Billing status of water, sewer, and storm water and street light utility accounts.
Please call the Public Works Department at 651-322-2022 when you need the following utility services:
A. WATER AND SEWER MAINTENANCE – Property owners should call if having some kind of problem
with their water meter, need to have service shut off while a repair is done in their home, or any other type of
maintenance issue. City staff will determine if the issue requires staff attention or if the problem is the
homeowner’s responsibility to contact a plumber. If the issue is the responsibility of the City, an appointment
will be set up for the repair at no charge if the problem is not the result of negligence. After business hours
or on weekends, for non-emergency calls, a fee will be charged as stated in the current Fee Resolution.
B. DOOR TAGS – A door tag may be left at a property for various reasons. Please follow the instructions on
the tag and contact the City as soon as possible.
2) UTILITY BILLS OR STATEMENTS
The City processes quarterly cycle billing. The city is divided into 3 sections: Section 1 is all property(s) north of
CR42 and west of TH3, and is considered Cycle 1. Section 2 is all property(s) south of CR42 and west of TH3 and
all storm water only accounts, and is considered Cycle 2. Section 3 is all property(s) east of TH3 and all commercial,
industrial, institutional and multi-family housing, and is considered Cycle 3. Bills are mailed out monthly on a rotating
cycle with the billing period a full 3 month (quarter) term. All bills are due on the 20th of the billing month. Statements
will reflect that month’s due date. Customers will not be allowed to write post-dated checks to be held. The City will
deposit payments received on a daily basis. Any unpaid balance not received by close of business on the due date will
result in a 6% late penalty addition to that account balance. Any payment received after close of business on the due
date is considered late; there is no grace period.
3) PAST DUE ACCOUNTS
When payment in full for a utility balance is not received by the due date, a 6% penalty on water charges, a 6% penalty
on sewer charges, a 6% penalty on Capital Improvement Fund charges, and a a ,6% penalty on storm water charges
and a 6% penalty on street light charges will be added to the account balance. If a payment received after the due
date includes the late penalty charges, no further action is required by the customer. Quarterly billings and subsequent
penalties will accrue on the account until paid in full or certified to the property taxes (see Item 1312). No additional
notice will be sent if late penalties are added. The unpaid balance will be listed on your next quarterly billing statement
as a previous balance.
4) PAYMENTS
The City accepts utility payments in the following manner:
a. Check, bank draft or cash by mail. Please allow ample mail processing time; payments must be received by
the close of business on the due date. We will not accept a postmark date as on time.
b. Check or cash payments may be placed in one of the City’s drop boxes located in the upper level of City
Hall parking lot next to front door, lower level of City Hall parking lot across from main door is a drive-
up box, and a drop box on the wall inside City Hall next to the front window/counter.
c. Cash, check, debit and credit card payments by walk-in at City Hall during normal business hours.
d. Phone payments are accepted by our online bill pay processor PSN by calling 877-885-7968. You will
need to have your complete account number ready when you call.
e. On-line payments can be made using a credit or debit card or e-check. Visit the city website
www.ci.rosemount.mn.us for links to Payment Service Network (PSN) to first register your account.
Once registered, you may make payments, view account and payment history, reprint bills, and/or opt-
out of paper statements. Please call 877-885-7968 if you have registration and/or set-up questions.
5) REFUND POLICY
Refunds for overpayments will be made on terminated accounts only, and only if the overpayment is $100.00 or more.
Overpayments less than $100.00 will be credited to the current and active account. The only exception to the refund
policy is in the event of an overpayment resulting from a clerical error. In this case, the owner may decide if they
would like a refund or a credit on their account.
6) COURTESY CREDIT / BILLING ADJUSTMENTS
A one-time courtesy credit will be allowed for penalty charges if there is a discrepancy in the date the payment was
received by the City, once the City is notified by the owner. The adjustment will only be granted during the current
billing quarter for only that quarter’s late fees.
7) NEW METER INSTALLATION / DISCONNECT AND RECONNECTION CHARGE
Water billing shall start at the time of installation/pickup of a water meter. Prior to meter installation, only storm
water charges may apply. Water meters shall be purchased from the City at a charge designated by the current Fee
Resolution. Where service has been turned off, a service charge for the shut-off will be placed on the final billing or
the next quarterly bill per the Fee Resolution. When water service resumes, a service charge for the turn-on will be
placed on the final billing or next quarterly bill per the Fee Resolution. ONLY CITY STAFF MAY TURN WATER
ON OR SHUT WATER OFF. Please schedule an appointment with Public Works if shut-off or turn-on service is
needed. Residential meters are to be installed by a licensed plumber or the owner only. All other meters are to be
installed by the plumbing contractor but may require an appointment with Public Works to install or program the
reading device. Note: While water is shut off, the fixed charges will still be billed quarterly; only the water & sewer
usage charges are stopped until the meter is reinstalled.
When a meter has been found to be faulty for some reason, clogged or stopped, the amount of water used and billed
will be estimated in accordance with the amount used previously in the year.
The property owner may, by written request, have a meter tested for accuracy by submitting a deposit for the testing
in the amount stated in the current Fee Resolution. The fees are based on meter size and the testing is performed by
an independent source. If testing indicates an error over 5% of the water consumed, the deposit is refunded, the
utility account will be adjusted accordingly, and a new meter will be installed at no charge. Such adjustment shall not
extend back more than one billing period from the date of written request.
8) IRRIGATION METERS FOR COMMERCIAL, INDUSTRIAL & MULTI-FAMILY PROPERTY
The City will require the management company of an HOA or owner of a commercial/industrial property to
seasonally remove and reinstall their irrigation meters if the meter is not located in a temperature controlled building
to prevent freezing and meter breakage. They must also schedule an appointment with Public Works for the water
shut off and/or turn on so the City may obtain a meter reading to properly bill usage. The City will shut off the water
and suspend billing the water fixed charges until the meter(s) are reinstalled. Prior to turning on the water in the
spring, the owner or management company must set up an appointment with Public Works to verify the proper
reinstallation and turn on the water. ONLY CITY STAFF MAY TURN ON OR SHUT OFF WATER. If the City
is not notified of a seasonal meter removal, all applicable billing charges will continue uninterrupted.
9) RESIDENTIAL IRRIGATION (SECOND) METERS
Because irrigation meters for residential properties are installed inside the home, they are not seasonally removed.
Usage on the second meter and the original meter for inside the home are added together for billing.
10)9) CAPITAL IMPROVEMENT FUND & FIXED CHARGES FOR INSTITUTIONAL ACCOUNTS
WITH IRRIGATION
Schools, churches and government agencies are considered institutional accounts. These accounts shall be exempt
from the Capital Improvement Fund charge on their second meter, if they have more than one, and will be billed only
the fixed charge and usage. The charges billed on the account for the regular meter will include the Capital
Improvement Fund fee based on the largest of the two meter sizes.
11)10) FINAL METER READINGS/FINAL BILLS
A final meter reading will be taken when ordered only if a property is being sold. We do not take meter readings on
rental property. The fixed charges will be prorated from the beginning of the period to the closing date. Final bills
are processed daily and mailed soon thereafter. If a final reading was not scheduled, we will process the final bill
when notified by Dakota County of a property sale using the last period meter read. Any usage since the sale date
and the actual final date then falls to the new owner. It is the responsibility of both parties to verify that the utility
account has been properly transferred and any and all previous unpaid balances are satisfied upon sale of a home.
12)11) RATES
All utility rates shall be established on an annual basis by resolution recommended by the Utility Commission and
adopted by the City Council. Current rates are available in the Fee Resolution.
13)12) TAX CERTIFICATION
At the present time, the City of Rosemount does not shut off water service for non-payment of utility bills. In March
and September of each year, any current account or terminated account with a balance due greater than $15.00 will
be certified to the current owner’s property taxes as a special assessment with applicable fees and interest.
Owners are notified a minimum of 30 days prior to the certification payment deadline of a pending assessment. After
the deadline, all payments for these delinquent amounts must be made to the Dakota County Treasurer and are
accepted at the government centers in Apple Valley, Hastings or West St. Paul.
The County will accept payments on the assessments through December 31stnoon on December 31st of that year.
Any unpaid balance at that time will become a lien against the property and will be assessed on the next year’s property
taxes.
Any utility payment made to the City of Rosemount after the deadline will be credited to the current property owner’s
account and will in no way affect the tax certification. No refunds will be granted if the delinquent amount is paid to
the City in error after the deadline.