HomeMy WebLinkAboutRes No. 09-26 - Establish Fee of $25 for NSF ChecksResolution No. 09-26
Paul S. Gibson, F
CITY OF PALM DESERT
FINANCE DEPARTMENT
STAFF REPORT
REQUEST: APPROVAL OF ESTABLISHMENT OF A FEE IN THE AMOUNT OF
TWENTY FIVE DOLLARS ($25.00) FOR CHECKS RETURNED WITHOUT
PAYMENT, OTHERWISE KNOWN AS NON -SUFFICIENT FUNDS
CHECKS
DATE: May 7th, 2009
Recommendation:
By Minute motion, approve the establishment of a fee in the amount of
twenty five dollars ($25.00) for checks returned without payment otherwise
known as NSF, non -sufficient or insufficient funds checks.
Executive Summary:
The City of Palm Desert occasionally receives checks as payment for City services that
are returned by our bank as non -sufficient funds (NSF) or without payment, and the City
incurs expenses associated with collection of these returned checks equal to $25.00
each. On average, a total of 30 NSF's per year are received which totals $750.00 in
bank fees.
Therefore staff recommends that City Council, approve a fee of twenty five dollars
($25.00) payable using only a cashier's check, money order or cash for the purpose of
satisfying this debt. Currently the cities of Palm Springs, Cathedral City, Desert Hot
Springs, Indian Wells, La Quinta and Indio as well as County of Riverside charge a
similar fee for returned checks.
Submitted By:
Approval:
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Original on File with City Ck i4's Office
RESOLUTION NO. 09- 26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, ESTABLISHING A FEE FOR CHECKS RETURNED WITHOUT
PAYMENT
WHEREAS, the City Treasurer/Director of Finance has occasionally received checks as
payment for City services that are returned by our bank as non -sufficient funds,(NSF) and the
City incurs expenses associated with collection of these funds; and
WHEREAS, on average thirty (30) NSF's per year are received which total $750.00 in
bank fees; and
WHEREAS, staff wishes to recoup such costs in the form of a fee similar to other local
government agencies.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert,
California, that a fee of twenty five dollars($25.00) be established to offset the expense to the
City, payable using only a cashier's check, money order, or cash for the purpose of satisfying
this debt.
BE IT FURTHER RESOLVED that the City Council does hereby authorize the City
Treasurer/Director of Finance to charge the fee of twenty five dollars for any checks returned
from our bank.
PASSED AND ADOPTED by the City Council of the City of Palm Desert, California this 7th day
of May, 2009 by the following vote to wit:
AYES:
NAYS:
ABSENT:
ABSTAIN:
ROBERT A SPIEGEL, MAYOR
ATTEST: APPROVED AS TO FORM:
Rachelle D. Klassen, City Clerk David J. Erwin, City Attorney