HomeMy WebLinkAboutRESOLUTION NO. 2005-40 RESOLUTION NO. A _4
A RESOLUTION ESTABLISHING A FEE FOR
RETURNED CHECKS DUE TO INSUFFICIENT FUNDS
AND CREATING A CASH PAYMENT ONLY POLICY
WHEREAS, The City of Fairfax receives numerous payments from customers
for utility account payments and .other such services and occasionally, a financial
instrument is returned to the City for non-payment due to.insufficient funds or the
instrument was drawn on a closed account; and
WHEREAS, Each check returned by a drawee°s financial institution, due to
insufficient funds, creates substantial employee inconvenience and city expense; and
WHEREAS, The City is desirous of establishing a process for compensating the
City for the expenses so incurred; and
WHEREAS, Section 554.3512 of the Code of Iowa 2003 Supplement states that
"The holder of a dishonored check, draft, or order may assess against the maker of that
check, draft or order a surcharge not to exceed thirty($30.00)dollars"; and
WHEREAS, A<number of Cities in Iowa have a"cash payment only policy"with
individuals who have passed more than one dishonored check in a period of a year to
reduce the burdens of correcting problems associated with accepting a dishonored check.
BE IT RESOLVED, By the City Council of the City of Fairfax, Iowa„ as
follows:
Section 1. A. fee of $25 is hereby.established for servicing returned checks
received by the City of Fairfax.
Section 2. The City of Fairfax will only accept cash payment from any individual
who attempted payment to the City with a dishonored check more than I time in any
given period of 12 months.
Section 3. Notice of the aforementioned policies shall be posted prominently at
the City Hall receptionist counter.
NOW, THEREFORE, BE IT FURTHER RESOLVED, By the Fairfax City
Council of the City of Fairfax, Iowa; that the Mayor and City Clerk are hereby authorized
and directed to execute said Resolution.
Passed and approved this day of , 2005.
AYES: .
NAYS:
ABSENT:
Bill Voss,Mayor
ATTEST:
tnoConnie Frame, City Clerk
The foregoing Resolution having been approved this date by the Fairfax
City Council,I hereby afprov the same by affixing my signature as City Clerk on this
—LLday of , 2005.
Connie Frame, City Clerk