HomeMy WebLinkAboutReso 2009-177 - Utility Late Payment Penalties
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RESOLUTION NO. 2009- 177
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
SUSPENDING REDUCTIONS IN UTILITY LATE PAYMENT PENALTIES
FOR LATE NOTICES AND FINAL DISCONNECT NOTICES
WHEREAS, on June 15, 2009, the City Council considered and acted upon a number of
recommendations presented to the Council from a citizen appointed Utility Review Billing
Committee (DBRe); and
WHEREAS, one of the recommendations made by the UBRC and adopted by the City Council was
to reduce the residential late charge associated with the Late Notice (15-Day Notice) from sixteen
dollars ($16) to ten dollars ($10) and the residential late charge associated with the Final
Disconnection Notice (7-Day Notice) from twenty dollars ($20) to fifteen dollars ($15); and
WHEREAS, utility late payment penalties are not imposed to support the cost of providing utility
service to any parcels iri the City, are not a part of the utility rate structure for the City's various
municipal utilities, and since 2006 the revenue from late payment penalties bas been deposited into
the City's General Fund; and
WHEREAS, the impact to the City's General Fund associated with the June 15,2009, action to
reduce late payment penalties has been estimated to be a reduction in revenue of approximately
$619,438; and
WHEREAS, on September I, 2009, the City Council considered budget reductions and proposed
layoffs to address revenue shortfalls caused by the current economic recession including layoffs of
personnel in the Police Department, totaling approximately $640,000 to achieve General Fund
savings; and;
WHEREAS, the City Council bas determined that layoffs of Police personnel would not be in the
best interest of the health, safety and welfare of the citizens of Redding and that, to avoid such
layoffs, the June 15,2009, decision to reduce late payment penalties should be temporarily reversed
until the economy turns around;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL THAT:
1.
The Late Notice (15-Day Notice) penalty shall be increased from ten dollars ($10) to sixteen
dollars ($16), and the residential late payment penalty associated with the Final
Disconnection Notice (7 -Day Notice) shall be increased from fifteen dollars ($15) to twenty
dollars ($20), effective as soon as is practicable, and said changes shall be reflected on the
City's master schedule offees, fmes and penalties.
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2.
The Late Notice (15-Day Notice) penalty shall be decreased from sixteen dollars ($16) back
to ten dollars ($10), and the residential late payment penalty associated with the Final
Disconnection Notice (7-Day Notice) shall be decreased from twenty dollars ($20) back to
fifteen dollars ($15) when the annual sales tax revenue for the City returns to the fiscal year
ending June 30, 2006, amount, adjusted for inflation.
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3. This resolution shall take effect immediately upon its adoption by the City Council.
I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular
meeting of the City Council on the 15th day of September, 2009, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS: Dickerson, Stegall, and Bosetti
COUNCIL MEMBERS: Jones and McArtbur
COUNCIL MEMBERS: None .
COUNCIL MEMBERS: None
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RICK BOSETTI, Mayor
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ATTEST:.
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FORM APPROVED:
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RICHARD A. DUVERNAY, Ci Attorney
PAMELA MlZE,'i>tp
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