Item #09
Date: February 15, 2022
To: Mayor and City Council
From: Jennifer Styczynski, Finance Director
Jim Schaad, City Manager
Subject: Reinstatement of Sewer Late Fees and Correction to Fee Schedule Recommendation:
Pass a Motion to 1) have Council conduct the noticed public hearing to receive comments regarding proposed changes to the Marysville Fee Schedule; and 2) adopt Resolution No. 2022-XX approving reinstatement of sewer bill payment late fees and correcting the City of Marysville Fee Schedule to be consistent with the City of Marysville Municipal Code.
Background:
Sewer billing late fees have not been charged since February 2020 at the beginning of the Covid pandemic but are now proposed to be reinstated. Sewer late fees are contained in the Marysville Municipal Code.
They are ten percent of the billing amount for each late payment, plus one-half of one percent per month on the accumulated unpaid balance. However, the Marysville Fee Schedule presently shows the late fee at simply “$5,” which is not consistent with the Municipal Code.
Discussion & Analysis:
The attached Resolution provides City Council approval of the reinstatement of late fees and corrects the Fee Schedule addressing late fees to be consistent with the Municipal Code. This effort is in conjunction with the larger effort to improve payment of sewer bills within the City of Marysville, specifically, Ordinance 1438, passed January 4, 2022, regarding owner assessment, and Resolution No. 2022-02, also passed January 4, 2022, regarding a one-time payment policy for accumulated delinquent amounts. The intent is not to collect late fees but rather to incentivize customers to pay timely. This is the only proposed change to the Fee Schedule.
Fiscal Analysis:
Revenue from late fees is projected to range from $10,000 to $40,000 per year. As an example, if a singlefamily customer does not pay its bill for 12 month, the late fee approximately $84 for the year.
Attachments:
1. Resolution No. 2022-XX
2. Exhibit A, Proposed Revised Fee Schedule