ITEM TITLE:
#19-07 - Authorizing City Administration to Defer Payments Due from Individual Federal Employees for City Services and to Waive Related Interest Charges for the Duration of any Federal Government “Shut-Down” Furlough Period in 2019.
SUBMITTED BY: Brian Carlson, Finance Director
FISCAL NOTES:
Expenditure Required: n/a
Unencumbered Balance: n/a
Funding Source: n/a
RECOMMENDATION:
Approve Resolution
SUMMARY STATEMENT:
• This Resolution reflects consensus Council request to administration during the January 15th Council Meeting.
• Though the furlough is temporarily ended, Staff is forwarding this Resolution to Council in light of the possibility of another furlough period later in 2019.
• The proposed deferment and waiver applies to City Services such as utilities, Harbor slip leases, and Civic Center rentals. It does not apply to property taxes.
• To avoid interruption of regular, ongoing billing processes, staff requests the latitude to calculate and bill for payments due and related interest and penalties, and will retroactively defer/waive charges when presented with evidence of Federal employ.
• If/when this resolution takes effect, staff will advertise through traditional and social media outlets to ensure the program details are broadly disseminated.
• Because staff does not know in advance who qualifies for this proposed program, they have no data on the quantity and value of the deferrals and waivers.
• Citywide interest charges are 10.5% annually, pro-rated monthly, and therefore the following examples capture some of the proposed program’s impact:
o Utility fees are $70 per quarter. Interest penalties on these late payments are $0.61/month.
o An average annual Harbor slip lease fee of $1,000 will generate monthly interest fees of $8.75.
o A banquet-hall party at the Civic Center costing $1,500 will generate monthly interest fees of $13.
Attachments: Resolution Furloughed Federal Employees