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8/18/2025 - City Council - Work Session - Agendas CITY OF SPRING PARK WORK SESSION AGENDA AUGUST 18, 2025 – 5:00 PM SPRING PARK CITY HALL (Work Session discussion times are approximate) 1. 5:00: Sunset Drive Presentation – Hennepin County 2. 5:30: Unpaid Utility Bills – Process to Certify on Tax Rolls a. DRAFT – Resolution Certifying Unpaid Utility Bills b. DRAFT – Ordinance Language for Delinquent Accounts c. SAMPLE NOTICE: Notice to Resident or Business of Intent to Certify Unpaid Utility Bills 3. 5:40: 2026 Budget Update 4. 5:55 Miscellaneous 5. 6:00: Adjourn City of Spring Park 4349 WARREN AVENUE, SPRING PARK, MINNESOTA 55384-9711 (952) 471-9051 FAX (952) 471-9160 WWW.CI.SPRING-PARK.MN.US Staff Memo To: City Council From: Mike Anderson, City Administrator Subject: Delinquent Utility Bills A city’s legal authority to apply a process comes from Minn Stat. Sec. 444.075, subd 3e, which provides that a city can certify “unpaid charges to the county auditor with taxes against the property served for collection as other taxes are collected.” In addition, the Spring Park City Code Sec. 34 -193 specifies the process for collecting delinquent accounts. Generally, if the city’s efforts at collecting utility payment fails, the city then must provide NOTICE to the property owner that the unpaid charges will be certified against the property and it must provide the property owner DUE PROCESS, an opportunity to object to or contest the proposed city action. Normally, a city prepares a delinquent utility certification roll which is reviewed and approved by the city council at a public hearing. The property owner must be notified in advance and given a chance to object to or appeal the proposed certification roll. After the council’s approval, the assessment is certified to the county auditor and collected as part of the property taxes. Once certified, the unpaid balance acts as a lien on the property. The state statute does not define when a property’s utility bill is considered “delinquent” or set a timeline for this certification process, so that is left up to the city to determine. Spring Park’s city code section 34-193 does spell out specifically who this applies to and when: “All charges which are delinquent one year or more on September 30 of each year which have been properly billed to the premises may be certified by the administrator/finance clerk/treasurer to the county auditor between October 1 and 10 of each year.” The attorney’s one concern with the language of the current city code is that it says that the delinquent charges can be certified by the “administrator/finance clerk/treasurer” but the state statute provides that this is done by the “governing body” which would be the city council. He is recommending this language is amended for clarity. He is also suggesting that we extend the potential dates of the certification process beyond 10/1 through 10/10, so we don’t get caught off guard with a cancelled council meeting . The attach ed documents are model documents created by the League of MN Cities. The “Notice of Intent to Certify” letter would need to be customized to reflect language in the Spring Park code stating that the property’s charges are considered delinquent one year or more as of September 30 th. Then the resolution certifying the delinquent amounts could be approved at a city council meeting/hearing where the property owner is given an opportunity to object. As of right now, the City of Spring Park has 14 utility accounts and that would be delinquent at the time of assessment. Some are already delinquent for more than a year. The City counts on these funds to cover its water/sewer infrastructure expenditures. RESOLUTION NO. XX A RESOLUTION CERTIFYING UNPAID UTILITY CHARGES WHEREAS, pursuant to proper notice duly given as required by law, the City Council has met, heard, and passed upon all objections to the proposed certifications of unpaid charges for municipal fees and utilities; and WHEREAS, the amounts of bad debt have been minimized through diligent collection efforts by staff. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SPRING PARK, MINNESOTA AS FOLLOWS: Such proposed certification of unpaid charges, a copy of which is hereby attached as Exhibit 1 and made a part hereof, is hereby accepted and shall constitute a lien against the lands named herein; Such certification shall be payable over a period of one year on or before the first Monday in January. The owner of the affected property may, at any time prior to certification of unpaid charges to the County Auditor, pay the whole of the certified unpaid charges on such property, with interest accrued to date of payment, to the Finance Clerk, except that no interest shall be charged if the entire certified amount is paid within thirty (30) days from the adoption of th is resolution. The taxpayer may at any time thereafter, pay the City Clerk or County Auditor, the entire amount certified and remaining unpai d, with interest accrued to _______, of the year in which payment is made. Such payment must be made before _______, or interest will be charged through _______ of the following year. The clerk shall forthwith transmit a certified copy of this certification role to the County Auditor to be extended on the property tax lists of the county and such certified unpaid charges shall be collected and paid over in the same manner as property ta xes Passed by the City Council of _______, Minnesota this _____ day of Month, Year. ___________________ Mayor Attested: ____________________ City Clerk CITY OF _______ RESOLUTION NO. _______ EXHIBIT 1 Certification Listing Parcel Description Service Amount Name Address Water bill $000.00 (STATE OF MINNESOTA COUNTY OF HENNEPIN I, the undersigned, being the duly qualified City Clerk of the City of Spring Park, certify that the attached Resolution of the City Council adopting a certification for unpaid charges under the Utilities Ordinance, is a true copy of the original, of which is on file at the City of Spring Park. Dated this _______ day of _______, 20_______ Seal ________________________________ City Clerk City of Spring Park NOTICE OF INTENT TO CERTIFY UNPAID WATER AND SEWER CHARGES TO BE COLLECTED WITH TAXES CITY OF: Spring Park Date: Phone Number: 952-471-9051 Name/Address of Owner: This letter is your notice that the city is preparing to certify and add your unpaid water and sewer charges to your property taxes. If these unpaid charges for water and sewer services for the property described above are not paid by _______, the city council will certify them to the county auditor to be collected along with property taxes. Delinquent amount Delivery/ Administrative costs TOTAL AMOUNT NOW DUE $ _______ $ _______ $ _______ To make payment now, return this letter with a check payable to the City of Spring Park in the amount of $_______, and drop off or mail to the city offices. Or, you can pay online at: https://springparkmn.payacp.com/home . The city offices are open Monday through Thursday, 7:30am to 5:00pm , and Friday, 7:30am to 11:30am. You have a right to request a hearing in front of the city council on this matter, but you must request this hearing by contacting the office of the City Clerk on or before 4:00 p.m. on _______ at phone number 952-999-7491. If you request a hearing, it will be held by the city council at least one week after the date on which you make your request, and the unpaid water and sewer charges will not be certified for payment with taxes before the hearing. You may contact me at the number below if you have any questions. Mike Anderson City Administrator CITY OF SPRING PARK 952-999-7493 THIS IS THE ONLY NOTICE YOU WILL RECEIVE BEFORE THE CITY COUNCIL CERTIFIES YOUR UNPAID WATER AND SEWER CHARGES TO BE COLLECTED WITH YOUR PROPERTY TAXES. City of Spring Park 4349 WARREN AVENUE, SPRING PARK, MINNESOTA 55384-9711 (952) 471-9051 FAX (952) 471-9160 WWW.CI.SPRING-PARK.MN.US Staff Memo: General Fund: 2026 Preliminary Levy To: Spring Park – Mayor and Council From: Mike Anderson, City Administrator Subject: 2026 Preliminary Levy First Look The purpose of this memorandum is to provide you with background information regarding the proposed draft 2026 preliminary levy in preparation for budget season . The scheduled meeting for adoption is September 2, 2026. As of today, we are currently looking at an approx. 5.2% levy or $103,000.00 dollars increase. This number is likely to change throughout the next few months. This is based on staff recommendations to this date, discussions, and projected increases for contracts, bond payments, and includes the capital project funds. The proposed levy increase includes: - Police Contract : 5% increase - Public Works Contract : 5% increase - Fire Services: 5% budgeted, discussions in progress - COLA for Staff: 5% - 5% increase for Health Insurance - Adding $50,000 to transfer into CIP plan - 5% placeholder for contracted services This is just a first look as we are waiting for information from services that will better help us forecast the 2026 Levy. Recommendation – Staff recommends putting the Preliminary Levy in th e 8-10% range in case something between September and December comes up that was not forecasted. Staff would have this prepared in the Resolution for the 9/2 meeting. City Council cannot add to the preliminary levy that is passed, but the increase can al ways be decreased. We are also waiting to hear from Adbo on our Rate Study which could inclu de some interest fees for bonding that could be paid out of the General Fund. This information will be ready at a future meeting after discussions with the Finance Committee.