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HomeMy WebLinkAbout5. OLD BUSINESS 5/20/03 illage of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: FROM: DATE: SUBJECT: VILLAGE MANAGER DEPUTY FINANCE DIRECTOR APRIL 30, 2003 INTEREST ON OVERDUE VILLAGE OBLIGATIONS PURPOSE: To recommend the adoption of an ordinance that would impose interest on past due amounts owed to the Village. BACKGROUND: The Village generates approximately 60 miscellaneous invoices per month for various ~'easons such as damage to Village property, false alarms, and compliance fees. DISCUSSION: Each month approximately 10-15% of individuals and businesses do not pay their invoices on time even though we allow a full 30 days in which to make the payment. Currently there is no additional charge for those late payments. The Village already has a provision for late fees for delinquent water and refuse charges and the attached ordinance would allow us to accrue interest on other types of past due amounts. RECOMMENDATION: It is recommended the draft ordinance be adopted as presented. Carol L. Widmer clw ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 8 OF THE VILLAGE CODE OF MOUNT PROSPECT BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION 1: Chapter 8 of the Mount Prospect Village Code shall be amended by adding a new Section 8.517 entitled "Interest on Overdue Village Obligations" to Article V "Other Regulations" of Chapter 8 entitled "Village Government Miscellaneous Provisions" to be and read as follows: Sec. 8.517: INTEREST ON OVERDUE VILLAGE OBLIGATIONS. Subject to Article XX of this Chapter 8 and unless stated otherwise in this Code, any financial obligation, of any kind or nature which is owed to the Village, shall bear interest at a rate set forth in Appendix A, Division II. SECTION 2: Division II of Appendix A of the Mount Prospect Village Code shall be amended by inserting the following under Chapter 8 in numerical order: Section 8.517; Interest on Overdue Villaqe Obli,qations Rate: 7% per annum commencing on the date that the bill is deemed overdue pursuant to Village regulations. SECTION 3 That this Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this __ day of ,2003. ATTEST: Gerald L. Farley, Village President Velma W. Lowe, Village Clerk C:~MyFiles\Mp\ORDS~SccS-~ 17SevenPercentlntercstOrd wlxt