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<br />.' <br /> <br />Cd <br /> <br />~ <br /> <br />.. <br /> <br />tit <br /> <br />. The June 1993 payment was delinquent. The mayor had a new unlisted telephone <br />number, and repeated phone calls attempted in September were unanswered. A <br />letter, copy attached, was finally sent in December 1993, but there was no <br />response. <br /> <br />. The June 1994 payment is now 5 months in arrears. The staff has written to the <br />Division of Central Services to once again initiate a collection action. <br /> <br />Discussion <br /> <br />The Town of Starkville appears to be four payments of $7,312, or a total of $29,248, <br />delinquent on their Construction Fund loan. The mayor has consistently ignored our repeated <br />requests for payment. The annual loan payment is not excessive and amounts to $89 per tap per <br />year, or $7.43 per tap per month. <br /> <br />The measures available to remedy the situation include a special tax levy, contractual <br />remedies, garnishment, and writ of execution. A system to levy a structured tax levied on the <br />residents of Starkville should be in place from the last collection action. <br /> <br />The Board might also consider deferment or scheduling of past due payments in order <br />spread out the economic hardship, if any exists. However, the town should come forward and <br />make a formal request, <br /> <br />Some additional institutional long-term measure needs to be taken to help reduce future <br />late payments. This might include the transfer of the management of the Starkville water system <br />to some other entity, such as the City of Trinidad, through annexation or cooperative agreement. <br />The city should have better resources and staff to properly operate and maintain the system and <br />to collect appropriate water user fees. This idea might be explored further in cooperation with <br />the Division of Local Government, Department of Local Affairs. <br /> <br />Recommendation <br /> <br />Staff recommends the Board pass a resolution ratifying the staff decision to authorize the <br />Division of Central Services to start a collection action against the Town of Starkville. This <br />action should include collection of the 1987 and 1988 payments, if applicable, in addition to the <br />1993 and 1994 payments plus all collection fees. <br /> <br />Attachment <br /> <br />WPS:94-1124C.DOC <br />