(A) Purpose. The city’s public utilities provides electricity, gas service and water service to customers for premises within its service territory. The city’s public utilities also bills for sewer service on behalf of the city. Each year there are customers who fail to timely pay the bills for the services provided. When collection efforts are unsuccessful, the amounts not collected must be borne by other customers and results in higher rates than would be in force if all customers paid their utility bills in a timely manner. To minimize uncollectable accounts for public utility services and to reduce the amount borne by paying customers the City Council adopts this chapter providing that the unpaid charges of delinquent service accounts may be assessed against the property served.
(B) Authority. Section 9.9 of the amended Charter of the city provides that the Public Utilities Commission may sue or make unpaid charges a lien against the property served in the name of the city for any money due to it for services or commodities. Minn. Stat. § 444.075, Subd. 3e, as it may be amended from time to time, enables municipalities to certify past due sewer and water bills for collection with property taxes. In 1989, Minn. Stat. § 366.012, as it may be amended from time to time, was passed giving towns the authority to certify unpaid service charges for collection with taxes and, subsequently in 1973, Minn. Stat. § 415.01, as it may be amended from time to time, was passed giving municipalities all the powers afforded to towns which, therefore, allows the city to certify delinquent electric and gas charges to the County Auditor to be collected with property taxes.
(C) Certification of unpaid charges. From time to time, the Public Utility Department shall certify to the City Clerk-Treasurer a list of unpaid accounts showing the names and addresses of all unpaid electrical utility accounts. The Council shall certify the unpaid accounts against the property receiving electrical, gas and water and sewer service from the Public Utility Department to the County Auditor for collection with taxes under the procedure found in Minn. Stat. §§ 429.011 et seq., as it may be amended from time to time. The delinquent sum together with interest shall be credited proportionately to the Electric, Gas or Water or Sewer Fund.
(D) Limitation. Notwithstanding the authority contained in the preceding section, pursuant to Minn. Stat. § 325E.025, Subd. 2, as it may be amended from time to time, the Public Utility Department shall not place a lien on a landlord or owner’s property for a tenant’s outstanding electrical bill unless the owner or a property manager, acting as the owner’s agent, contracted for the utility service.
(E) Application. The City Council declares that this chapter is procedural and may be applied retroactively against all properties upon which there exist unpaid charges for utilities for which a suit or lien may be served under § 9.9 of the amended Charter of the city.
(1992 Code, § 500:20) (Ord. 1486, passed 10-16-2012; Ord. 1500, passed 5-21-2013)